Ask URA Commissioner General 4

, 6 months ago

Discrepancies in digital stamp quantities.

Taxpayers observe that reels labeled as containing 6,000 or 30,000 digital stamps do not always translate into the same number of stamped bottles or cartons.

Can URA explain where these shortages arise and confirm whether reels should provide the full number of stamps paid for?

Dear Reader

The reel always has the same number stamps as registered on the purchase document. You can verify this by counting each stamp used whether damaged or good to confirm with what was indicated in the purchase document. Sometimes taxpayers only count the stamps attached to the products and forget to consider the damaged and discarded stamps.

For proper management of the stamps purchased, we advise taxpayers to do the following:

Keep record of the good and bad stamps;
Secure the stamps in a good lockable place with controlled access;
Share a report of damaged stamps for verification with URA.

Transparency in stamp accountability

Is there an independent verification or reconciliation process to ensure taxpayers receive the exact number of digital stamps they pay for?

Does URA consider this approach fair, or does it risk discouraging honest taxpayers and pushing them toward non-compliance?

Dear Reader,

URA appreciates your concern and has taken note of this. Unfortunately, there is no independent verification process for the stamps received. We request taxpayers to please do due diligence when receiving the stamps to ensure they have been given the correct number of stamps and the sequence if followed and the management after receipt.

We advise taxpayers to frequently monitor the stamp usage and demand for accountability from the people responsible for affixing them to ensure that the number of stamps used is equivalent to the bottles exiting the factory and any discrepancy should be accounted for.

Proportionality of penalties

Why are penalties and interest sometimes allowed to exceed the principal tax, especially for small taxpayers with limited income?

Dear Reader,

Penalties by nature are intended to deter noncompliance and therefore the law provides for situations where penal tax may exceed principal tax. For example, a penal tax that doubles the principal tax. On the other hand, interest due and payable on unpaid tax is not supposed to exceed the aggregate of the principal and penal tax.

In case a taxpayer has a scenario where the interest exceeds the aggregate of the principal and penal tax please engage the Ledger Reconciliation team or a nearby URA station for assistance.

Foreign income taxation

What are the tax implications for Ugandans who earn income abroad but have already paid taxes in foreign jurisdictions, and how does URA prevent double taxation in such cases?

Dear Reader,

Uganda taxes its residents on their worldwide incomes and nonresidents on income sourced in Uganda.

For an individual to qualify as a resident, they must meet the following criteria:

Must have a permanent home in Uganda
Present in Uganda for a period or periods amounting to 183 days or more in any 12-month period that commences or ends during the year of income.
Be present in Uganda during the current year and in the 2 preceding years for periods averaging to more than 122 days.

For Ugandan residents who have earned foreign income and paid foreign taxes on the income earned, the Income Tax Act provides relief in form of exemption in the case of foreign employment income and tax credit for other types of income included in gross income.

Please note that the foreign tax credit allowed to a resident taxpayer shall not exceed the Ugandan tax payable on that foreign income.

Inheritance and property transactions.

I inherited land from my late father and sold it to purchase another property. Due to insufficient funds, I obtained a bank loan top-up and was subjected to a 6% withholding tax.

How does URA support taxpayers in such genuine situations to meet obligations without causing financial distress?

Dear Reader,

Unfortunately, you have not provided sufficient information for us to advise you appropriately. However, take note that 6% Withholding Tax applies where a resident taxpayer sells a business or business asset. The purchaser is required to withhold tax and remit it to URA. The tax withheld is not a final tax and the payee may claim a credit for tax paid.

The 6% Withholding tax does not apply to bank loans or sale of non-business assets. Where tax has been withheld in error, a taxpayer may apply for a refund of the tax paid.

Public transport taxation.

What specific taxes apply to public transport operators, and why do they appear to comply with fewer complaints compared to other sectors?

Dear Reader,

Every business is required to register and account for relevant taxes. Public transport operators are required to account for the following taxes:

Income Tax: This is tax on profit generated by the transport operator which may be taxed under the Individual tax rates or at corporation tax rate. Public transport operators are required to pay an advance income tax of SHS 20,000 per seat which may be offset against their income tax liability for the year.
PAYE: This is deducted at source from the salaries and allowances of employees. The transport operator is required to account through a PAYE return and remit the taxes due by the 15^th of the following month.
Where a transport operator is designated as a Withholding Tax Agent, they will be required to withhold 6% tax on all supplies received and thereafter account through a withholding tax return and remit the taxes due by the 15^th of the following month.
Where the transport operator is operating as a company, the director(s) may account for their salary through the PAYE system. However, where the director(s) has other sources of income, they will be required to account for their income through filing Individual Income Tax returns.
VAT: Passenger transport services (other than tour and travel) are exempt from VAT.

Building trust with taxpayers.

What long-term reforms is URA implementing to shift from a punitive enforcement model toward a supportive, service-oriented tax system that promotes growth, fairness, and voluntary compliance?

Dear Reader,

As a service-oriented organization, Uganda Revenue Authority is intentional on continuously improving the quality of service that it offers its clients. Therefore, we have put in place various systems and solutions intended to provide a delightful experience to our clients such as availing an online portal through which taxpayers can file, and pay their taxes including accessing tax information in a simple and fast way.

We have also availed different channels through which taxpayers may contact us for service-oriented requests and these include: visiting the nearest URA office or through our email address; services@ura.go.ug, or Toll-free numbers; 0800117000 and 0800217000, or WhatsApp line; 0772140000, or through our website; touchpoint.ura.go.ug

Furthermore, taxpayers can report staff misconduct of any staff to our Integrity, Compliance and Ethics Division via 0800257700 or through the informer management window accessed as below: